The Homa Files

Recent studies have projected that many employers will drop their health insurance plans when ObamaCare goes live.

Why?

Simple economics.

According to the Kaiser Family Foundation’—reported in the WSJ –, the annual premium for an average policy last year was $5,049 for a single worker, with the company picking up roughly $4,150 (83%) and the employee the rest.

For a family of four, the total cost was $13,770, with the company picking up $9,773 (71%).

ObamaCare, businesses can stop providing health-care coverage, paying a $2,000 per-worker fine instead.

For small businesses, the trade-off is even more attractive: They are given a pass on the first 50 workers.

So what?

The employees formerly covered by employer-subsidized plans will swell.  Increasing the costs of ObamaCare.

That is, until the Feds raise the fine (tax?) on employers to cover the shortfall.

Bad estimating or clever foxes?

Think about it.

An induced move into a 1-payer system.

Pretty clever.  Especially if funded by a headcount tax (oops, fine) on employers.

Hmmm.

Is that likely to create jobs?

I’m betting the under.

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This entry was posted on June 21, 2011 at 6:31 am and is filed under ObamaCare. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.